by Ivan ElandJune, 2005

After defeating al Qaeda, at least in their own minds, top officials of the Bush administration are now contemplating a war against violent extremism. (I call it the WAVE.) Apparently, the already grandiose Global War on Terrorism — in bureaucratic jargon, the GWOT — just wasnt extravagant enough for an administration that thinks really big. Although administration officials implicitly acknowledge the spreading conflagration of global Islamic jihad, they are oblivious to their own culpability in causing it.

The real problem is that the administration, in permanent campaign mode even after reelection, has always regarded the GWOT as a political marketing gimmick, both at home and abroad. President Bush kicked off the sales effort a month after 9/11 with a bombastic presidential directive that promised the elimination of terrorism as a threat to our way of life.

But alas, all good marketing campaigns eventually get stale and that is evidently what has happened to the GWOT. One senior administration official, quoted in the Washington Post, indirectly admitted that a political make-over was again underway in the nations capital: GWOT is catchy, but there may be a better way to describe it.

In Washington, changes in surface rhetoric often signal transformation in underlying policy. Instead of concentrating its efforts to capture or kill the leadership of al Qaeda, the terrorist group that actually attacked the United States, the administration came up with the broader GWOT catchphrase so that an invasion of Iraq could fit under its umbrella. Who knows what additional administration monkey business will be perpetrated under the cover of the even wider WAVE. The target of any U.S. military operation wouldnt even need to kill innocent civilians or have alleged affiliations with those who do, such as Saddam Husseins Iraq. If you think the GWOT opened a can of worms, just think of the possibilities under the WAVE.

The Global War On Terrorism, however, will be hard to replace. It was an ideal federal program, generating the demand for even more intensive government security efforts. Without any apparent introspection about the Bush administrations role in inflaming violent Islamic extremism worldwide by invading Muslim territory, senior government officials are now turning their planning efforts toward combating the expected diffusion around the globe of a new generation of radical jihadists trained and given combat experience in the Iraq insurgency.

In the business world, a product with a self-generating demand is the Holy Grail. Under the GWOT, the U.S. security establishment has achieved that lofty goal. But because the WAVE crusades against an even wider definition of international misbehavior, greater results in generating anti-U.S. hatred around the world should be expected. For example, although the socialist governments of Cuba and Venezuela are not active supporters of international terrorists, could they become U.S. targets because of their affinity for the violent Marxist extremists in Colombia? Any such military strikes would engender even more anti-U.S. hatred than already exists in Latin America.

In addition to a new moniker for U.S. policy, the administration seems poised to dump more public monies into advertising campaigns overseas — euphemistically called public diplomacy — to quell anti-U.S. hatred by better explaining U.S. policies. Yet people in foreign countries may very well be more knowledgeable about U.S. foreign policy than Americans are — after all, they are the recipients of it. And repeated international public opinion polls show that U.S. policies overseas are what generate the hatred. All the public relations face-lifts in the world are not going to make ugly policy beautiful to the world. But perhaps the administration is less concerned about opinion abroad and more worried about it at home.

Past U.S. presidents have resorted to military interventions overseas when their domestic popularity and agendas sagged. President Bush invaded Iraq even when his poll numbers were higher than they are now. Given current approval ratings in the 40s and sinking and declining support for his domestic policies, the president could get into even more mischief overseas. Using the war against violent extremism and increased funding for public diplomacy to market such meddling may be in the offing. You may be able to catch the WAVE on TV, radio and in your local newspaper soon.

Ivan Eland is Senior Fellow and Director of the Center on Peace & Liberty at The Independent Institute in Oakland, California, and author of the books The Empire Has No Clothes, and Putting “Defense” Back into U.S. Defense Policy.

We are Hanno Beck, Lindy Davies, Fred Foldvary, Mike O'Mara, Jeff Smith, and assorted volunteers, all dedicated to bringing you the news and views that make a difference in our species struggle to win justice, prosperity, and eco-librium.

3 Responses to Bush’s Response to Failure — Spend, Spend, Spend

I believe that getting Osama bin-Laden and his cohorts, to be the only viable option after 9-11. Everything else is based on distortion, and the Iraq invasion was one of the worst things this administration has ever done.

The simple thing to do, would be to get the culprits for 9-11, and then repair the damage we have done politically around the world.

Getting bush impeached and tried would be a good start to ensure that the world knows we, the citizens of the United States, are not part of this horror of an administration.

The war to end all wars, the cold war against Athiestic Communism, the war against poverty, the war against drugs, the cultural wars, the spiritual warfare, the war against terrorism. Now the war against violent extremism.

Why does there always have to be an increase in output per manhour and GDP and a reduction in unemployment?

Why can’t we all just take a vacation, sit under a tree and read a good book and otherwise just play nice?

Advertise here.

Arts & Letters

Geonomics is …

a way to connect the dots. Making the cyber rounds is “The Cavernous Divide” by Scott Klinger, from AlterNet (posted March 21): “As the number of billionaires in the world expands, so does the number of those in poverty.” Duh. The yawning income gap is not news. Nearly every issue of our quarterly digest carries a similar quote. Yet the connection was worked out long ago by one of America’s greatest thinkers, Henry George, who labeled his masterpiece, Progress and Poverty. Techno- and socio-advances always enrich few and impoverish many. Yet progress also pushes up location values – the geonomic insight (is Silicon Valley cheaper now or more expensive?). Instead of taxing income, sales, or buildings, society could collect those values of sites, resources, EM spectrum, and ecosystem services via fees and dues, which would lower the income ceiling, and instead of lavishing corporate welfare, pay out the recovered revenue via dividends, which would jack up the income floor. Dots connected.

the study of the money we spend on the nature we use. When we pay that money to private owners, we reward both speculation and over-extraction. Robert Kiyosaki’s bestseller, Rich Dad’s Prophecy, says, “One of the reasons McDonald’s is such a rich company is not because it sells a lot of burgers but because it owns the land at some of the best intersections in the world. The main reason Kim and I invest in such properties is to own the land at the corner of the intersection. (p 200) My real estate advisor states that the rich either made their money in real estate or hold their money in real estate.” (p 141, via Greg Young) When government recovers the rents for natural advantages for everyone, it can save citizens millions. Ben Sevack, Montreal steel manufacturer, tells us (August 12) that Alberta, by leasing oil & gas fields, recovers enough revenue to be the only province in Canada to get by without a sales tax and to levy a flat provincial income tax. While running for re-election, provincial Premier Ralph Klein proposes to abolish their income tax and promises to eliminate medical insurance premiums and use resource revenue to pay for all medical expense for seniors. After all this planned tax-cutting and greater expense, they still expect a large budget surplus. Even places without oil and gas have high site values in their downtowns, and high values in their utility franchises. Recover the values of locations and privileges, displace the harmful taxes on sales, salaries, and structures, then use the revenue to fund basic government and pay residents a dividend, and you have geonomics in action.

what you do when you see economies as part of the ecosystem, following feedback loops and storing up energy. Surplus energy – fat or profit – enables us to produce and reproduce. To recycle society’s surplus, the commonwealth, geonomics would replace taxes with land dues (charged to users of sites and resources, in-cluding the EM spectrum, and extra to polluters), and replace subsidies with rent dividends to citizens (a la Alaska’s oil dividend). Without taxes and subsidies to distort them, prices become precise, reflect accurately our costs and values; then, motivated by no more than the bottom line, both producers and consumers make sustainable choices. While no place uses geonomics in its entirety, some places use parts of it, most notably a shift of the property tax off buildings, onto locations. Shifting the property tax drives efficient use of land, in-fills cities, improves the housing stock, makes homes affordable, engenders jobs and investment opportunities, lowers crime, raises civic participation, etc – overall it makes cities more livable. Geonomics – a way to share the bounty of nature and society – is something we can work for locally, globally, and in between.

an answer for Jonathan of the Green Party (Nov 7): “What does ‘share our surplus’ mean?”
Our surplus is the values that society generates synergistically. It’s the money we spend on the nature we use: on land sites, natural resources, EM spectrum, ecosystem services (assimilating pollutants). It’s also the money we pay to holders of government-granted privileges like corporate charters. We could share it by paying for the nature we use and privileges we hold to the public treasury then getting back a fair share of the recovered revenue. Used to be, owners did owe rent (“own” and “owe” used to be one word). And presently, some lucky residents do get back periodic dividends: Alaska’s oil dividend and Aspen Colorado’s housing assistance. Doing that, instead of subsidizing bads while taxing goods, is the essence of geonomics.
Jonathan: “Is local currency what you mean?”Editor: It’s not. Community currency is a good reform, but every good reform pushes up site values. That makes land an even more tempting object of speculation. Now, any good will eventually do bad by widening the income gap – until you share land values.

a study of Earth’s economic worth, of the money we spend on the nature we use, trillions of dollars each year. We spend most to be with our own kind; land value follows population density. Besides nearness to downtowns, we also pay for proximity to good schools, lovely views, soil fertility, etc. These advantages, sellers did not create. So we pay the wrong people for land. Instead, we should pay our neighbors. They generate land’s value and deserve compensation for keeping off ours, as they’d pay us for keeping off theirs. It’s mutual compensation: we’d replace taxes with land dues – a bit like Hong Kong does – and replace subsidies with “rent” dividends to area residents – a bit like Alaska does with oil revenue. Both taxes and subsidies – however fair or not – are costly and distort the prices of the goods taxed and the services subsidized. By replacing them and letting prices become precise, we reveal the real costs of output, the real values of consumers. Then, just by following the bottom line, people can choose to conserve and prosper automatically. A community could start by shifting its property tax off buildings, onto land – a bit like a score of towns in Pennsylvania do; every place that has done it has benefited.

a scientific look at how we divvy up the work and the wealth, how some of us end up with too much or too little effort or reward. That’s partly due to Ricardo’s Law of Rent, showing how wasteful use of Earth cuts wages. And it’s partly due to how a society’s elite runs government around like water boys, dishing out subsidies and tax breaks. While geonomists look political reality right in the eye, without blinking, conventional economists flinch. When Paul Volcker, ex-chief of the Federal Reserve, moved on to a cushy professorship at Princeton cum book contract, the crush of deadlines bore down. So Volcker asked a junior associate to help with the book. The guy refused, explaining that giving serious consideration to policy would ruin his academic career. The ex-Fed chief couldn’t believe it and asked the department chair if truly that were the case. That head honcho pondered the question then replied no, not if he only does it once. And economics was AKA political economy!

a way to have everybody pulling on the same end of the rope. Last summer’s expansive forest fires shed light on growing class resentment in the West. Old log-gers and ranchers rankled at the new urgency to stamp out the blazes that threatened the recent Aspenesque settlers. The newcomers expected working class firemen to make protecting their expensive homes top priority. (Chr Sci Mntr, Spt 7) The tinder for this envy? Rich people moving in bid up the price of land, making it hard to afford by people on the margin. The fault really lies with our system of privatizing land value. If this rising value were collected by land dues and shared by rent dividends – the essence of geonomic policy – who’d complain? The more people move in, the higher the land value, and the fatter the dividend paid to residents. Then people on the margin might go out of their way to invite rich outsiders in.

a way to connect the dots. Making the cyber rounds is “The Cavernous Divide” by Scott Klinger, from AlterNet (posted March 21): “As the number of billionaires in the world expands, so does the number of those in poverty.” Duh. The yawning income gap is not news. Nearly every issue of our quarterly digest carries a similar quote. Yet the connection was worked out long ago by one of America’s greatest thinkers, Henry George, who labeled his masterpiece, Progress and Poverty. Techno- and socio-advances always enrich few and impoverish many. Yet progress also pushes up location values – the geonomic insight (is Silicon Valley cheaper now or more expensive?). Instead of taxing income, sales, or buildings, society could collect those values of sites, resources, EM spectrum, and ecosystem services via fees and dues, which would lower the income ceiling, and instead of lavishing corporate welfare, pay out the recovered revenue via dividends, which would jack up the income floor. Dots connected.

a manual. The world did not come without a way for people to prosper, and the planet to heal and stay well; that way is geonomics. Economies are part of the ecosystem. Both generate surpluses and follow self-regulating feedback loops. A cycle like the Law of Supply and Demand is one of the economy’s on/off loops. Our spending for land and resources – things that nobody made and everybody needs – constitutes our society’s surplus. Those profits without production (remember, nobody produced Earth) can become our commonwealth. To share it, we could pay land dues in to the public treasury (wouldn’t oil companies love that?) and get rent dividends back, a la Alaska’s oil dividend. Doing so let’s us axe taxes and jettison subsidies. Taxes and subsidies distort price (the DNA of exchange), violate quid pro quo by benefiting the well-connected more than anyone else, reinforce hierarchy of state over citizen, and are costly to administer (you don’t really need so much bureaucracy, do you?). Conversely, land dues motivate people to not waste sites, resources, and the ecosystem while rent dividends motivate people to not waste themselves. Receiving this income supplement – a Citizens Dividend – people can invest in their favorite technology or outgrow being “economan” and shrink their overbearing workweek in order to enjoy more time with family, friends, community, and nature. Then in all that free time, maybe we could figure out just what we are here for.

the policy that the earth’s natural patterns suggests. Use the eco-system’s self-regulating feedback loops as a model. What then needs changing? Basically, the flow of money spent to own or use Earth (both sites and resources) must visit each of us. Our agent, government, exists to collect this natural rent via fees and to disburse the collected revenue via dividends. Doing this, we could forgo taxes on homes and earnings and subsidies of either the needy or the greedy. For more, see our web site, our pamphlet of the title above, or any of our other lit pieces; ask for our literature list.